Hidden Fees When Using a Bank
Monthly Maintenance Fees
Explanation
Many banks charge a monthly maintenance fee for checking or savings accounts, ranging from $5 to $25 per month. This fee is typically waived if you meet certain conditions, such as maintaining a minimum balance or having a direct deposit set up.
Probability to Save
HighWhy and How
You can often avoid this fee by maintaining a minimum balance or setting up a direct deposit of your paycheck. If you’re charged this fee, consider asking your bank for a waiver or switching to a no-fee account offered by many online banks.
ATM Fees
Explanation
Banks charge fees when you use an out-of-network ATM, typically between $2 and $5 per transaction. Some banks also charge a fee for using their own ATMs, although this is less common.
Probability to Save
Medium to HighWhy and How
You can avoid this fee by using ATMs that are within your bank's network or by choosing a bank that reimburses ATM fees. Some banks also offer fee-free ATMs as part of their nationwide network. If you're charged, ask if you can be reimbursed for the fees or look for accounts that provide unlimited fee-free ATM usage.
Overdraft Fees
Explanation
If you spend more than you have in your checking account, banks typically charge an overdraft fee, which can range from $30 to $40 per transaction. Some banks allow overdrafts automatically, while others require you to opt-in.
Probability to Save
MediumWhy and How
To avoid overdraft fees, you can opt-out of overdraft protection or set up alerts to monitor your balance. If you're charged, you may be able to get the fee waived, especially if it's your first instance or if you have a good banking history. Consider linking your savings account to your checking account for automatic transfers when you run low on funds.
Non-Sufficient Funds (NSF) Fees
Explanation
If a check or transaction is presented that exceeds your available balance and the bank doesn't cover it, you'll face a Non-Sufficient Funds (NSF) fee, typically ranging from $30 to $35. This fee is charged when the bank refuses to pay the transaction.
Probability to Save
MediumWhy and How
To avoid this fee, always keep an eye on your account balance. You can also set up alerts or link a savings account to cover potential shortages. If charged, ask your bank to waive the fee, especially if it’s the first time you’ve been overdrawn or if you have a history of maintaining sufficient funds.
Paper Statement Fees
Explanation
Some banks charge a paper statement fee if you choose to receive a physical copy of your monthly account statement. This fee typically ranges from $2 to $5 per month.
Probability to Save
HighWhy and How
You can easily avoid this fee by switching to electronic statements. Simply update your account preferences to receive e-statements, which are free and environmentally friendly.
Foreign Transaction Fees
Explanation
If you use your debit or credit card abroad or for international purchases, many banks charge a foreign transaction fee of 1% to 3% of the transaction amount.
Probability to Save
HighWhy and How
To avoid foreign transaction fees, use a no-foreign transaction fee card or a travel-friendly bank that doesn't charge these fees. Many banks and credit unions offer debit cards specifically designed for international travel without foreign transaction fees.
Wire Transfer Fees
Explanation
Sending money via a wire transfer can result in fees ranging from $15 to $50 for domestic transfers and even higher for international transfers. Receiving an international wire transfer may also incur a fee, typically between $10 and $25.
Probability to Save
MediumWhy and How
You can reduce or avoid wire transfer fees by using free or low-cost alternatives like Venmo, Zelle, or PayPal for domestic transfers. For international transfers, look for options with lower fees, such as TransferWise or Revolut. If using wire transfers at your bank, inquire about ways to reduce or eliminate fees based on your account type or relationship with the bank.
Returned Check Fee
Explanation
If a check you wrote bounces due to insufficient funds, your bank will charge a returned check fee, usually between $25 and $40. This fee is charged to the account holder who issued the check.
Probability to Save
HighWhy and How
To avoid this fee, keep track of your account balance and ensure sufficient funds before issuing a check. If you’re charged, contact your bank to request a one-time fee waiver, particularly if it’s your first instance or if it was a minor error.
Account Closing Fee
Explanation
Some banks charge a fee if you close your account within a certain time frame, typically within 6 months to 1 year after opening. This fee can range from $25 to $50.
Probability to Save
MediumWhy and How
To avoid this fee, ensure you don’t close your account too soon after opening. If you must close the account, try to wait until after the fee waiver period or ask your bank for an exception based on your circumstances.
Cash Deposit Fees
Explanation
While many banks offer free cash deposits at their own ATMs or branches, some charge fees for deposits made via third-party ATMs or when depositing cash to a business account. Fees can range from $1 to $5 per deposit, depending on the method and account type.
Probability to Save
MediumWhy and How
To avoid these fees, use your bank’s own ATMs or deposit cash directly at a branch. For business accounts, consider business-focused accounts that allow more free deposits or use fee-free deposit networks like Allpoint.
Inactive Account Fee
Explanation
If your account remains inactive for an extended period (usually 12 to 24 months), some banks charge an inactive account fee. This fee can be $5 to $15 per month after the account has been dormant.
Probability to Save
HighWhy and How
To avoid this fee, ensure you make at least one transaction on your account each year, even if it’s just a small purchase or transfer. Alternatively, consider closing accounts you no longer use.
Debit Card Replacement Fee
Explanation
If your debit card is lost, stolen, or damaged, some banks charge a replacement fee of around $5 to $15 for issuing a new card.
Probability to Save
HighWhy and How
You can typically avoid this fee by keeping your card in a safe place. If your card is lost or stolen, report it promptly to your bank, and inquire about any fee waivers for card replacements.
Check Copy Fee
Explanation
If you request a copy of a canceled check or need to see a check’s details (e.g., for verification or proof of payment), your bank may charge a check copy fee. This fee usually ranges from $3 to $5 per check.
Probability to Save
MediumWhy and How
To avoid this fee, check your bank’s online banking platform for free access to digital copies of checks. If you need a physical copy, try to get it via your bank’s website or ask your bank if they’ll waive the fee.
Bank Check Fees
Explanation
Some banks charge for issuing a bank check (also called a cashier’s check), which can cost anywhere from $5 to $15.
Probability to Save
Medium to HighWhy and How
To avoid this fee, use personal checks or consider electronic payment methods like Venmo, Zelle, or PayPal, which are often free and fast alternatives to bank checks.